Sempra Energy on Monday announced it will initiate the formal process to sell its 83.6% stake in Luz del Sur S.A.A. in Peru, and 100% stake in Chilquinta Energía S.A. in Chile.
Luz del Sur serves more than 4.9 million consumers in the southern region of Lima, Peru, and is the largest electric company in that country. Luz del Sur also is active in the development and operation of hydroelectric projects, including its Santa Teresa hydroelectric plant in central Peru.
Chilquinta Energía is the third-largest distributor of electricity in Chile, Kallanish Energy reports. The utility provides electricity to more than 2 million consumers in the cities of Valparaiso and Viña del Mar in central Chile, and also is active in the development and operation of electric transmission lines.
“Our businesses in Peru and Chile are considered some of the most admired and desirable companies in the region,” said Trevor I. Mihalik, executive vice president and chief financial officer of Sempra.
The planned sale also includes Sempra Energy’s interests in two energy-services companies, Tecnored and Tecsur, which provide electric construction and infrastructure services to Chilquinta Energía and Luz del Sur, respectively. Sempra Energy expects the sale process to be completed by the end of 2019.
Bank of America Merrill Lynch (BAML) and Lazard will act as financial advisors to Sempra in connection with the planned sale, and White & Case will serve as legal advisor.
This post appeared first on Kallanish Energy News.